If you live in New York and you’ve been experiencing the bite of high prices at the grocery store, gas stations, or pretty much anywhere else, help is coming. Starting in October 2025, the state will send inflation refund checks as high as $400 to eligible residents, with no conditions.
This rebate is part of the 2025–2026 state budget, and it’s meant to alleviate the sting of inflation for working New Yorkers. The concept is simplified by Governor Kathy Hochul: if the state is taking in more money in the way of high sales taxes due to inflation, then it only makes sense that the state should be refunding the people who paid it.
Why is New York sending refunds?
Refund checks are going out because sales tax revenue during the previous year set all-time highs. Because everyone paid more for anything and everything due to inflation, the state benefited. Instead of keeping it, New York is returning $2 billion of it to over 8 million families.
By the governor, “This can go into the state coffers, but why not give it back to the residents whose pockets it came out of?” It’s a way of helping working families, especially those with lower and middle incomes.
Who will get the money
If you filed a New York State Resident Income Tax Return (Form IT-201) for tax year 2023 and are income eligible, you’ll be sent a check automatically. That is, you won’t need to apply or file special forms.
What you must have to qualify:
- You filed Form IT-201 in 2023.
- You are within the income limits for your filing status.
- You were not a dependent of someone else.
How much will you get?
Your refund depends on your filing status and income. Let’s break it down:
✅ Single filers
- $75,000 or less → $200
- $75,001 to $150,000 → $150
✅ Married filing jointly
$150,000 or less → $400
$150,001 to $300,000 → $300
✅ Married filing separately
- $75,000 or less → $200
- $75,001 to $150,000 → $150
✅ Head of household
- Under $75,000 → $200
- $75,001 to $150,000 → $150
✅ Qualified surviving spouse
- Under $150,000 → $400
- $150,001 to $300,000 → $300
Families on public assistance with dependents will also get an extra $100, funded from leftover federal pandemic relief funds.
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What should you do now?
If you owe, you do not need to do anything else. The checks will start mailing out in mid-October 2025. Just make sure your mailing address is up to date with the New York State Department of Taxation and Finance so your check doesn’t get misplaced.
Summary of quick facts
- Up to $400 refund checks
- Checks start mailing mid-October 2025
- Must file Form IT-201 for 2023
- Based on filing status and income
- An additional $100 for families with children who are receiving public assistance
- Checks will be mailed automatically—no application required
❌ Refund is nontaxable
FAQs
Q: Do I need to apply
A: Nope! If you qualify, you’ll receive the check mailed to you automatically.
Q: Is this going to affect my taxes next year
A: No. The refund is not taxable income.
Q: Did I just move
A: Make sure to update your mailing address with the New York State Tax Department so you don’t have any delays.
Q: Is this a one-time payment
A: Yes, this is a one-time refund for the 2025–2026 budget.
Final Thoughts
This refund is good news for New Yorkers all over the state. The rates are still high and a lot of people are struggling to keep up, so a little extra money can go a long, long way. So keep an eye on your mailbox this fall—your refund might be on its way!
